FX.co ★ TTF Rebounds on Rising Demand

European natural gas futures have increased to €35.6 per megawatt-hour, recovering from a 13.7% decline observed in the previous session. This rise is attributed to a surge in cooling demand across the region prompted by a heatwave. Atmospheric G2 data indicates a significant uptick in air conditioning usage, with an anticipated short-term dip in temperatures before they escalate again toward the end of June. This week, cities like Madrid, experiencing temperatures of 40°C, Zagreb at 36°C, and Paris at 33°C, are enduring severe heat, thereby driving up energy consumption. In contrast, the Nordics and Eastern Europe are expected to face cooler, stormier conditions due to a low-pressure system centered over Germany, Poland, and the Baltic states. Additionally, traders are closely monitoring the Middle East, where a tenuous ceasefire between Iran and Israel is ongoing. Although there have been some reported breaches, the ceasefire has alleviated concerns about significant disruptions to the energy flow through the Strait of Hormuz, a crucial global liquefied natural gas (LNG) transit route.